Investment Center Is Another Name for Profit Center

question 36

True/False

Investment center is another name for profit center.

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Definitions:

Per Share FCFE

Free Cash Flow to Equity per share; a measure of how much cash is available to the equity shareholders of a company on a per share basis.

Required Return

The minimum percentage return an investor expects or requires from an investment to make it worthwhile.

FCFE

Free Cash Flow to Equity, a measure of how much cash is available to the equity shareholders of a company after all expenses, reinvestment, and debt repayment.

Intrinsic Value

The actual, fundamental worth of an asset, as opposed to its market price or book value.